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Given below are the present value factors for $1.00 discounted at 11% for one to five periods. Interest is compounded annually at 11%. Present Value
Given below are the present value factors for $1.00 discounted at 11% for one to five periods. Interest is compounded annually at 11%. Present Value of $1 Discounted at 11% per Period Periods 0.901 0.812 0.731 0.659 0.593 What amount should an individual have in a bank account today before withdrawal if $8000 is needed each year for four years with the first withdrawal to be made today and each subsequent withdrawal at one-year intervals? (The balance in the bank account should be zero after the fourth withdrawal.) O $8000 + ($8000 ~ 0.901) + ($8000 x 0.812) + ($8000 x 0.731) O $8000 = 0.659 x 4 O $8000 0.901 x 4 O ($8000 ~ 0.901) + ($8000 ~ 0.812) + ($8000 * 0.731) + ($8000 * 0.659)
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